I am due to declare myself bankrupt next wednesday, and just have a question. I purchased my house 2 years ago and got a NRock together mortgage ( in my name). My partner (not married) paid 2500 to the deposit of the house and has contributed to half the mortgage over the last 26 months and continues to do so. I am worried that the equity although not massive could be about 6-8k as 4500 will br written off as unsecured, which could cause us a problem. Should I mention the payments my partner has contributed to try and reduce the equity ( as she will want to purchase the beneficial interest )and should we get an independent valuation before wednesday or just wait to see what the OR says. any help would be appreciated p.s I owe 90 k on the secured part of the mortgage.
Interesting - from your posting it would appear that your partner is not registered as a joint owner nor was party to the mortgage. However your partner contributed to the deposit and pays half the mortgage payment.
If that is the case the OR will likely go for the full benefical interest - and then you would have to counter argue. However if there was a trust deed established clearly identifying your partners rights then this would be a different case.
I Suggest that you refer this to a solicitor to enquire on the cost of establishing the trust and registering it - if costs are prohibitive for the sums involved then you will need to fall back to negotiation.
Your partner will need to demonstrate the payment flows - The OR could challenge the original deposit monies as an unsecured loan to you and therefor your partner would simply stand in line with th other creditors.
Specifics need to be reviewed and if there are no overiding factors for filing next week it may be prudent to delay whilst you are reviewing the situation.
It is clear to me that your partner has a beneficial interest in the property, and providing she is able to produce evidence of the deposit monies and that she has paid towards the upkeep of the property and the mortgage, her position ought to be fairly simple to prove.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
Thanks for the responses, she has bank statements showing where the money has gone, is this enough? also is this something she has to prove to the or when trying to purchase the beneficial interest or is it something I have to do at the meeting with the or.
any help would be appreciated
Posted - 24 April 2008 : 22:44:12
